Business insights. Баутина И.В - 24 стр.

       It's when a business owner - or franchisor - allows others -franchisees - to use
it's name, products and goodwill. The franchisee will have varying degrees of
control over how products and services are marketed or sold.
5.
       The initial fee can range from Ј5,000 to Ј500,000.
If you want to run a Post Office Counter, that costs Ј250,000. A Snappy Snaps
franchise is Ј120,000.
On top of that, you can expect to pay a management service fee, which is usually a
percentage of turnover - anything from 10% to 25%.
There could be a contribution to an advertising pool and some franchisers insist you
pay them for marketing or products - sometimes at marked-up prices, so watch out.
6.
       Simon Wise, deputy director of the British Franchise Association (BFA),
says: "It's popular because there are many different types of business now embracing
franchising - it's not just pizzas and burgers." He adds: "There are wider
opportunities for people with different skills and experience."
       Another reason franchising is popular is that figures show more than 90% of
franchise-businesses make a profit within two years. This is much higher than for
non-franchise businesses.
7.
       Also when it comes to money, banks tend to favour franchises over other
start-up businesses. This is because they are proven brands with someone behind the
scenes helping to ensure they succeed.
8.
       Simon Wise says that anyone thinking of buying a franchise simply must do
their homework. When choosing a business, he recommends concentrating on four
key areas:
• Brand - is it established, a proven success.
• System - what the BFA calls the know-how. Again, is it proven and can it easily
be transferred to a new franchisee.
• Support - it might be your own business, but the back-up is vital.
• Agreement - the legal bits which tell you what you can and can't do.
When you've picked the business, see if it is BFA accredited - not all franchises are,
but it means someone has already run the rule over it. Check it out in Companies
House to find out more about it and have a professional examine the legal
agreement. Most important of all, says Simon, is to speak to other franchisees to see
how they're getting on.

2. Read the text again and complete the headings in the text with these words:
   a. Things to consider                             c. Popularity of franchising
   b. Getting backing                                d. Getting on board
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